By Cyrus S Darabshaw Exclusive To Manganese Investing News ^{[1] [2]}

Overall manganese prices, especially that of ferromanganese, remained stable the second week of February, after a downturn at the start of the month. This is in keeping with global metals and commodities trend.

We have said in the past and we continue to maintain that manganese could be the 'come back' metal of this decade. If you still don't believe us, please read the following extract from a report from the australian.com:

BHP Billiton ^[3] (BHP), Australia's biggest company and the world No 1 resources house, has delivered its worst first-half underlying profit in four years following a crash in commodities market because of the global financial crisis. Yet, the miner has been able to trounce market expectations with a $US 5.7 billion interim underlying profit result, which is expected to fuel upgrades from analysts ahead of a stronger second half.

Speaking after the results were released yesterday, chief executive Marius Kloppers said that despite a strong recovery in demand and prices in the first half of the 2009-10 financial year, earnings were still down on the previous first half, which was before the full effects of the financial crisis had been felt.

And for the sceptics among you, guess what? The divisions that beat analysts' expectations on BHP Billiton were coking and thermal coal, aluminum ^[4]... and manganese!

Analysts say it may not have that great a half-year for the company where the performance of its manganese division was concerned. Compared with the second half of 2008, revenues for that metal in the six months to December 2009 were down 54 per cent while underlying earnings before interest and tax slumped 85 per cent.

But like other metals, manganese, the ingredient vital to steel-making and for which there is no substitute, too, was a victim of the downturn in steel demand in 2009.

But analysts now are very optimistic that the worst is over, and cite the growing price graph line of the last six months as proof.

And wouldn't you think it is just coincidence that two of the more likely manganese stars of the future all chose last week to launch investor presentations about themselves?

BHP owns 60 per cent of the Groote Eylandt mine in the Northern Territory, followed by the now delisted Consolidated Minerals at Woodie Woodie in Western Australia and the other producer, OM Holdings (OMH), also in the NT.

All two are within the top 20 Australian mines by value.

The two who gave investors presentation were Australia's Shaw River Resources ^[5] (ASX: SRR) whose stated ambition is to become the world's leading manganese producer and explorer.

SRR has six manganese projects active, most in the Pilbara and one in Ghana.

Another presentation was made by yet another Australian explorer Aurora Minerals ^[6] (AXS:ARM), which has the Capricorn Southeast deposit, inland from Carnarvon.

There's been mounting interest in this stock. Last month, Fat Prophets recommended a buy at $1.05; but the stock is now at $1.25 after climbing 17 per cent over the past two trading days.

Company news

Credit agency Fitch Ratings has assigned India's M/s Mangilall Rungta (Mangilall) a national long-term rating of 'A-(ind)' with a stable outlook. Fitch has also assigned a national long-term rating of 'A-(ind)' to the company's long-term loans aggregating Rs 153.2 million, and national short-term ratings of 'F2+(ind)' to its fund based limits aggregating Rs 500.0 million, and non-fund based limits aggregating Rs 500.0 million.

The ratings reflect the Rungta group's long track record in the manganese ore and iron ^[7]ore mining business.

Mangilall is part of the S R Rungta group ^[8]. The ratings also reflect the high operating EBITDA margins (20 per cent - 50 per cent), and strong cash reserves.

A positive rating triggers include conversion of the partnership-based business into a limited company, further additions in its mine reserves along with the renewal of existing leases, and successful conduct of the ferro alloy business, which would lead to substantial increases in revenue and/or improvement in EBITDA margins above 30 per cent on a sustained basis.

China Yunnan Metallurgical Company (CYMCO), a manganese smelting company is set to carry out exploratory work on potential manganese deposits in Nasaucoko in the upper-reaches of Navosa, soon. The exploration will be worth $5 million and will span the next three years.

The NLTB has granted a 30-year surface lease to Viti Mining Limited ^[9] which is exploring in the area. Viti Mining CEO John Sanday, who is in China to negotiate with CYMCO, said with the approval of their lease, mining is expected to start next month.

For the past year, Viti Mining has been exploring for manganese at Vorovorobitu Mine in Nasaucoko which also involved the landowners.

Goldspan Resources Inc ^[10] has announced that effective February 12, 2010, it had entered into an in-principle agreement to invest in NABC SA Mining Company in Cote d'Ivoire, for a manganese mine.

Goldspan will invest up to US$ 8.4 million in staged tranches. These funds will be used for the acquisition of the ownership and to determine the basis of assessment of the current potential resources.

Goldspan, in a statement, said it will own a thirty-five per cent stake in the new company that will be formed that will acquire a mining research license from NABC SA Mining Company for manganese at Kouassi Datekro in Cote d'Ivoire, which covers 1,817 square kilometers.

To date, NABC SA was granted a prospection permit for Kouassi on October 10, 2008, and, effective June 12, 2009, an extraction permit for sampling up to 30,000 tons.

NABC SA has started trenching and a comprehensive mining and trenching plan has been commissioned to a well-known international company.

Upon completion of the current joint venture  negotiations, the company will commence additional exploration work, including surveys to evaluate sufficient resources to permit a bankable feasibility study.

The overall goal of the mining operation is to develop and construct the mine with all the associated infrastructures; construction of a manganese enrichment plant and  acquisition logistics including transport equipments.